Closeout Bargains Abound

The Daily Auto Insider: Buyers of new 2003 model year vehicles paid an average 18.3% below sticker price in September.

Buyers of new 2003 model year vehicles paid an average 18.3% below sticker price in September, a record low for the model year, according to Edmunds.com, the online automotive information provider.

Average net price, which is the transaction price adjusted to reflect incentives, was $23,704 for 2003 model year vehicles, as compared to an average sticker price of $29,000. In the same month, 2004 model year vehicles were sold for an average net price of $26,461 — 11% below their average sticker price of $29,733.

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"Our research shows that 69% of new vehicle buyers selected 2003 model year vehicles in September — the traditional turn of the model year — taking advantage of low prices and the vast selection still available," stated Dr. Jane Liu, Executive Director of Data Analysis for Edmunds.com. "The savings are substantial at the time of purchase, but consumers should consider that the closeout bargains will produce lower residual values than their newer model year counterparts."

Edmunds.com also reports that in September 7.5% of 2003 models sold for an average of $9,000 or more below sticker price, and 41.6% sold at an average of $5,000 or more below sticker price. Models with the biggest discounts included Cadillac Deville which sold at an average of $13,048 below its suggested retail price, Lincoln Navigator at $12,999 below, and Jaguar XJ-Series at $10,129 below.

However, Edmunds.com found the success of the 2004 model year vehicles pulled the overall industry average net price up to $24,554, up $388 or 1.6% as compared to August.

From August to September, the Edmunds.com New Vehicle Price Index rose 0.85% to 98.2% (base = 100 set in January 2002), mainly as a result of the market share increase of 2004 model year vehicles. The van segment experienced the highest monthly increase, 2.2%, while sports cars had the biggest decline, 1.3%.

Honda Opens Safety Research Facility in Ohio

Honda has opened a new automotive safety research facility in Raymond, Ohio. The $30 million facility has seven advanced safety testing laboratories, including the world's most sophisticated high-resolution crash barrier block and the world's first pitching crash test simulator, Honda said in a news release.

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"This is an important advancement of our local R&D capabilities," said Hirohide Ikeno, president of Honda R&D Americas, Inc. "This new Ohio facility will play an important part in Honda's global research efforts."

The crash test facility is capable of conducting a wide variety of both real world and simulated crash tests including full frontal, angled barrier, side impact and offset crash tests, along with simulations of various tests related to the performance of safety systems such as airbags and seatbelts.

Honda says that a key feature of the facility is the "world's most sophisticated crash barrier block," a 100-ton movable cube with sides that can be configured for different tests, allowing for quicker and more efficient test cycles.

Saturn to Add More Models

Saturn will double its lineup to six vehicles over the next three years, Reuters reported.

The Relay, which calls a "crossover sport van," will be the first of three new vehicles to join the Saturn lineup. The company has not revealed what other vehicles it will add to the lineup, but has said previously that the brand is considering a small convertible, the story said.

The Relay goes on sale late next year.

GM Boosts V-8 Fuel Efficiency

General Motors says it will soon introduce V-8 engines that incorporate technology to improve fuel economy by as much as 8 percent, The Detroit News reported.

Called "displacement on demand," GM's system uses a computer to sense how much power a vehicle requires and automatically disables or engages half or all of the cylinders accordingly.

"Like a symphony conductor, [the computer] has to be capable of commanding the right things," GM powertrain engineer Dick Michalski told the News.

Beginning in model year 2005, GM's new Gen IV Vortec 5300 8-cylinder engine will be available with displacement on demand in the Chevrolet TrailBlazer EXT, GMC Envoy XUV and GMC Envoy XL-all extended length sport-utility vehicles.

The Vortec 5300 without displacement on demand will be available in the Buick Rainier, a mid-size SUV.

The new 3900 V-6 engine's first application will be without displacement on demand capability when it is installed in the Pontiac G6 next year, which will replace the Grand Am. A displacement on demand version is planned, but Michalski would not reveal when it will be available.

Huge Recall by Nissan

Nissan is recalling 2.56 million vehicles worldwide — including about 700,000 in the United States — because of potentially faulty engine sensors that may prevent the vehicles from starting, The Associated Press reports.

In the United States, the company is recalling the following Nissan models:

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